From the outside, being a plaintiff in a lawsuit may look like a piece of cake. You file the lawsuit, make your case, and then hopefully receive your settlement. However, the process is a bit more complicated than that. It can take months, sometimes years to reach a settlement, and many plaintiffs struggle during the process. Lawsuit loans give plaintiffs the opportunity to see cash from the settlement before the lawsuit concludes, but this type of funding can give the plaintiff an edge in the lawsuit as well.
First, let’s consider the lawsuit process. There are many stages a lawsuit has to go through in the court system. After having en experience that you feel requires legal action and finding an attorney, paperwork must be filed, and then the defendant and his or her legal team provide a response. The lawsuit then moves into the discovery process, meaning that evidence is provided and depositions begin. This phase can last as long as it requires—some lawsuits spend more than a year in the discovery phase alone! The rest of the process is what the public is the most familiar with: trial, judgement, and sometimes an appeal, in which case the process begins all over again. Not only are these phases time consuming, but there are usually periods of time between them.
The point is, lawsuits take a long time, and defendants sometimes try to draw them out as long as possible. Why? Because defendants are usually large companies like hospitals, insurance companies, or restaurants. These defendants have the time and money to fight a lawsuit to the bitter end, but plaintiffs usually don’t—and defendants know this! The longer the lawsuit drags on, the more financial strain the plaintiff will be put under from medical bills, lost wages, and other financial issues related to the lawsuit as well as everyday expenses. Many plaintiffs just can’t afford to fight as long as defendants can.
What happens when a plaintiff runs out of funding? The defendant will usually offer a low settlement offer early on, and depending on the amount of strain the plaintiff is under, he or she may have no choice but to accept. This means that the plaintiff may not get the settlement he or she deserves. This is not only a shame for the plaintiff, but also because the company or individual they were fighting against will not be held accountable for their negligence.
This is where lawsuit loans come to the rescue. Plaintiffs can think of a lawsuit loan as an investment. A lawsuit loan allows them to pay the bills while they see the lawsuit to the very end, and then a fair settlement can be reached. This takes away the defendant’s advantage and gives the plaintiff a legal edge.
About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit www.smpadvance.com.
